No evidence of under-invoicing in favour of the importer of MG cars into Pakistan has been found by the country’s Federal Bureau of Revenue (FBR) after its six month investigation into the importer and the vehicles’ Chinese manufacturer.
Originally one of Britain’s leading car marques and now ultimately owned by Chinese state-owned automotive giant, SAIC Motor, MG and its importer in Pakistan were accused of under-invoicing its MG HS model which launched in the country late last year.
Automotive entrepreneur Javed Afridi who owns MG Capital, the company importing the cars, has consistently denied the allegations of under-invoicing as his company seeks to establish a market position in Pakistan (Trade-based Financial Crime, 17 February 2021).
The FBR’s customs wing officials asked for Pakistan’s trade mission in Shanghai to assist in verifying that import documents prepared by the manufacturer of the vehicles did not indicate under-invoicing.
The trade mission replied that it had been able to obtain verification from Chinese customs that the documents represented the true value of vehicles shipped to the importer in Pakistan.
Chinese customs were also able to confirm that the goods declaration made by the Pakistani importer valued at the vehicles at the right price.
The FBR said that Afridi had shown them a certificate from China Council for the Promotion of International Trade (also known as the China Chamber of International Commerce) that was attested by the consular attaché of the Pakistani consulate in Shanghai.
Categories: Trade Based Financial crimes News